HCinitial {ssmodels}

Two-Step Method for Parameter Estimation of the Heckman Model

Description

Estimates the parameters of the classic Heckman model via the two-step method.

Usage

HCinitial(selection, outcome, data = sys.frame(sys.parent()))

Arguments

selection

Selection equation.

outcome

Primary Regression Equation.

data

Database.

Details

Generally, the two-step method is very useful for finding initial values for the Likelihood Estimation method. In first step performs a probit analysis on a selection equation. The second step analyzes an outcome equation based on the first-step binary probit model.

Value

Returns a numerical vector with estimates of the parameters of the classical Heckman model using the two-step method

Examples

data(MEPS2001)
attach(MEPS2001)
selectEq <- dambexp ~ age + female + educ + blhisp + totchr + ins + income
outcomeEq <- lnambx ~ age + female + educ + blhisp + totchr + ins
HCinitial(selectEq,outcomeEq, data = MEPS2001)